Australian Property

17

Foreign property buyers off the boil

The NAB quarterly property survey is out (it canvasses property sector insiders) and it’s still all go in the east: The NAB Residential Property Index rose to +21 points in Q1’15, up from +12 points in Q4’14 and sits comfortably above its long-term average (+14 points). Market sentiment improved in all states (except WA), although

22

How to abolish stamp duty

By Leith van Onselen The Property Council of Australia (PCA) has provided a submission to South Australia’s review of state taxation, which repeated its call to abolish stamp duty in exchange for a broad-based land tax. From The Canberra Times: Daniel Gannon, the executive director of the South Australian division of the Property Council says

18

Capt’ Glenn too late the hero

By Leith van Onselen In his speech last night to the American Australian Association luncheon, RBA Governor, Glenn Stevens, called for help from policy makers in managing the macro-economy, noting the clear short-comings of monetary policy [my emphasis]: To this point, the balance that the Reserve Bank Board has struck has seen the policy rate

7

Nick Xenophon changes tune on super-housing fix

By Leith van Onselen From Karl Fitzgerald at Prosper Australia comes news that independent senator for South Australia, Nick Xenophon, has dumped hir plan to allow first home buyers to raid their superannuation accounts to purchase a home: Cycling into work yesterday [Thursday] I bumped into the good Senator Nick Xenophon. I had to yell

11

Significant investor visa reform positive

From Mac Bank:  SIV suspended – new scheme to be introduced from 1 July – Last week the Department of Immigration and Border Protection (DIBP) announced the suspension of the Significant Investor Visa (SIV) programme until 30 June 2015. Any new nominations will be subject to the new complying investment framework, effective 1 July 2015. We believe

52

Auction clearances remain fully mental

The national auction clearance rate remains stuck in the stratosphere, driven again by super strong demand in Sydney and Melbourne. The preliminary national clearance rate was 79.2%, up marginally from the weekend before Easter (79.0%), with clearance rates still running at their strongest level in six years in trend terms, from RP Data: Sydney’s clearance

0

RP Data weekly housing market update

Click to view Core Logic-RP Data’s latest weekly housing market update, which provides a useful snapshot of the housing market as at 19 April 2015. This week’s report includes: Latest weekly dwelling value results; Auction results & clearance rates; Latest median house & unit prices; Average time on market & vendor discounts; Mortgage market activity;

24

Property rentier collects its spoils

By Leith van Onselen Hot on the heels of Prime Minister, Tony Abbott’s gutless announcement that he won’t reform negative gearing, prime spokesman for the property industry, the Property Council of Australia (PCA), has released the following statement: Executive Director, Nick Proud, said providing certainty on the future of this tax measure will benefit housing

102

Abbott rules out negative gearing changes

By Leith van Onselen It seems the Government’s war on entitlements does not apply to wealthy tax shelters, with Prime Minister, Tony Abbott, last night ruling-out changes to negative gearing because he doesn’t want to raise taxes. From The SMH: Asked whether he would rule out changes to negative gearing, following an Australian Council of

8

RP Data weekly Australian house price update

By Leith van Onselen In the week ended 16 April 2015, the Core Logic-RP Data 5-city daily dwelling price index, which covers the five major capital city markets, rose by 0.47% – the eighth consecutive weekly rise (see next chart). Values rose across all major capitals except Brisbane (see next chart). So far in April,

25

ACOSS calls on Hockey to unwind negative gearing

By Leith van Onselen Ahead of the release of the Federal Budget next month, the Australian Council of Social Service (ACOSS) has called on the Government to unwind negative gearing by preventing rental losses from being claimed against unrelated wage/salary income, along with reducing the 50% discount on capital gains tax (CGT) for assets held for

24

Raising the GST could hit new housing hard

By Ross Elliott, cross-posted from The Pulse As Governments state and federal begin grappling with harsher budget realities and an electorate disinterested in listening when it comes to the necessity of budget cuts or asset privatisation, it becomes increasingly likely that Australia will follow the New Zealand path and raise the GST. This could hit

20

The Business hammers banks on property

ABC’s The Business last night ran its second segment on Australian property, this time examining the banks’ $1.6 trillion exposure to residential property. The segment contains excerpts from CLSA’s Brian Johnson, the OECD’s Adrian Blundell-Wignall, DFA’s Martin North, and Deloitte’s James Hickey. The OECD’s Adrian Blundell-Wignall is particularly blunt in his assessment of Australian banking

19

SQM sees weakening rental market

SQM Research has released its rental vacancy data for March, which registered a small 0.1% reduction in vacancies nationally with vacancies up 0.1% over the year (see next chart). As shown above, the fall in vacancies over the month was driven by Melbourne (-0.2%), Sydney (-0.1%), Brisbane (-0.1%), Adelaide (-0.1%), and Canberra (-0.1%). Over the

78

The Business does the Bubble

ABC’s The Business aired an interesting segment last night – the first of a three part series – looking at the Australian housing bubble, with a particular emphasis on Sydney. The segment features Lindsay David, author of Australia Boom to Bust, along with SQM Research’s Louis Christopher and RMIT Emeritus Professor, Mike Berry. Check out

54

Foreigners aim to dodge FIRB on houses

By Leith van Onselen The AFR’s Nick Lenaghan has revealed this morning that foreign companies are being set-up to specifically side-step Foreign Investment Review Board (FIRB) rules precluding non-residents from purchasing pre-existing Australian dwellings. The schemes works by “establishing a buying entity which complies with Australian law. That entity then buys a property using funds

48

A housing boom is not the same as a mining boom

By Leith van Onselen The Australian published an incredibly long-winded (2,026 word) defence of the housing bubble over the weekend, entitled “Safe as houses: why the bubble is no trouble”, denigrating those of us warning of a housing bubble and arguing that the construction boom is the best thing to happen since the mining boom:

34

The bank of mum and dad booms!

By Leith van Onselen There’s more evidence today of Australia’s woeful housing affordability forcing first home buyers (FHBs) to resort to unconventional means to secure a home, with Fairfax reporting a big rise in the number of FHBs using financial assistance from their parents to obtain a mortgage: National Australia Bank says the proportion of

0

RP Data weekly housing market update

Click to view Core Logic-RP Data’s latest weekly housing market update, which provides a useful snapshot of the housing market as at 12 April 2015. This week’s report includes: Latest weekly dwelling value results; Auction results & clearance rates; Latest median house & unit prices; Average time on market & vendor discounts; Mortgage market activity;